Annapurna Finance Private Limited
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our prospective customer?
Annapurna Finance Private Limited (“AFPL”) is a leading NBFC-MFI in Bhubaneswar, India, focused on promoting financial inclusion for underserved, low-income communities, with a specific focus on supporting women- and rural households.
What is our funding objective?
FMO is looking to provide a USD 30 million senior secured facility in INR with a tenor of 5 years. The funding will be allocated to support AFPL's portfolio growth, enhancing access to finance for microentrepreneurs in rural areas. Additionally, up to five percent of the loan proceeds will be designated for Water Sanitation and Hygiene (WASH)- or qualifying green loans.
Why do we want to fund this investment?
The project aims to improve access to finance for underserved borrowers who need credit assistance to support their income-generating activities. AFPL has reached a significant portion of the financially underserved population across India through both its microfinance- as well as its business loan program, which serves over 98% female and 86% rural borrowers as of March 2025. The proposed transaction is fully eligible for the FMO Reducing Inequalities label and partially eligible for the FMO Green label.
What is the Environmental and Social categorization rationale?
AFPL is categorized as an FI-C client, given the size and purpose of AFPL’s loans to its end clients. FMO analyses risks from different perspectives and assessments. In case of microfinance investments, the E&S classification is typically low because the exposure is generally limited to retail and micro-entrepreneurs. There is no exposure to activities on FMO’s exclusion list or that trigger any of the IFC Performance Standards (PSs). FMO analyses risks from different perspectives and assessments. In the case of microfinance investments, the E&S classification is typically low because the exposure generally is limited to retail and micro-entrepreneurs. The risks that might come with microfinance investments, such as, among others, over-indebtedness, transparency of interest rates, and responsible pricing, are covered by FMO in other assessments such as the Client Protection Principles (CPPs). In case of high contextual risk, a human right assessment can be carried out.
- Website customer/investment
- https://annapurnafinance.in/
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Publication date
- 8/11/2025
- Deadline for feedback
- 9/10/2025
- Total FMO financing
- USD 30.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C